Gold XAU/USD soars to record high near $5,050 amid geopolitical tensions

LONDON (January 25) Gold price (XAU/USD) rises to a fresh record high near $5,045 during the early Asian session on Monday. The precious metal extends its upside amid geopolitical risks and concerns over the US Federal Reserve (Fed). 

The first three-way peace talks between Russia, Ukraine, and the US have concluded in Abu Dhabi with no apparent breakthrough, as fighting continues, according to the BBC. Ukrainian President Volodymyr Zelensky proposed a second meeting as early as next week, while a US official said that a fresh round will begin on February 1. 

The ongoing conflict between Russia and Ukraine, along with military intervention in Venezuela and threats to annex Greenland, has boosted traditional safe-haven assets such as Gold. 

Traders await US President Donald Trump’s pick for the next Fed Chair after Trump said he has finished interviewing candidates. A more dovish chair would increase bets on further interest-rate cuts this year, which could underpin the Gold price. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

FXStreet